1606 Corp.

Entity and headquarters

• Nevada corporation (the “Company,” “we,” or “us”)
• Incorporated February 2021; spin-off from Singlepoint Inc. in April 2021
• Corporate headquarters: Phoenix, Arizona
• Principal office: 2425 E. Camelback Rd., Suite 150, Phoenix, AZ 85016
• Website: www.cbdw.ai

Business focus (current)

• Strategic focus on acquisition and development of power infrastructure and energy assets to support data center and AI-related operations
• Core activities include licensing and deployment of AI chatbot technology targeting the CBD industry and other sectors, and related infrastructure initiatives
• Revenue model centered on monthly recurring licensing for chatbot solutions (CBD industry and public-company vertical)

Past business line (historical)

• Previously operated in tobacco- and nicotine-free smoking alternatives
• Brands included 1606 Original Hemp, TRUZ, and Singlez (Singlez was an individually packaged version of TRUZ)
• The tobacco/nicotine business has been discontinued

AI chatbot platform and products

• Developed in partnership with ARXT Labs
• Products:
  • chatCBDW by CBDW AI — CBD-industry chatbot for customer questions and product recommendations
  • IRChat — public-company vertical that extracts and presents investor-related information such as SEC filings, press releases, and company data from websites
• Distribution: licensing to CBD brands and retailers; distribution contract with Cool Blue Distribution
• Sales channels: company website, online advertising, email campaigns, and independent sales organizations (ISOs) including CBD distributors, website designers/builders, and payment processors

Key partnerships and transactions

• 2023: Partnership with ARXT Labs to build the chatbot platform
• Distribution contract with Cool Blue Distribution and Don Flanagan to market services to CBD companies
• 2024: Launch of IRChat for public companies
• 2024 (July): CEO Greg Lambrecht stepped down; Austen Lambrecht appointed CEO
• 2024–2025: LOI to acquire a minority equity position in Adnexus (AI biotech); LOI expired
• 2025: Non-binding LOI with Sim Agro Inc. to acquire a controlling interest; negotiations ongoing
• 2026-03-12: Purchase and Sale Agreement to acquire real property and related assets in Angelina County, Texas

Texas property acquisition (proposed)

• Property: 132 acres in Lufkin, Angelina County, Texas, including a 55-megawatt power generation facility and a 50,000-square-foot climate-controlled warehouse
• Intended use: behind-the-meter captive power asset to support AI/data center infrastructure
• Purchase price (PSA): $11,168,864 (cash at closing $7,000,000; assumption of a mechanic’s/materials lien)
• Earnest money: $250,000 nonrefundable (funded by short-term notes from Greg Lambrecht and 1800 Diagonal)
• Closing date: scheduled for April 15, 2026
• Financing: expected to come from a combination of sources, including a potential investment commitment from ENMAS EPC Power Projects Limited plus additional debt or equity financing
• Conditions: acquisition on an “as-is, where-is” basis; closing contingent on customary conditions and financing
• Operational considerations: limited prior operating experience in power generation and data center infrastructure; facility largely inactive; capital expenditures to be determined; transaction plans rely on completion of the Sim Agro discussions and the ability to attract qualified personnel

Current operations and staffing

• One full-time employee (CEO Austen Lambrecht)
• Independent contractors and consultants engaged for development, marketing, and other functions; no part-time employees
• Corporate activities include management of AI chatbot development, marketing, partnerships, and pursuit of the Texas property project

Market and growth strategy

• Target markets: CBD brands and retailers, with potential expansion into other consumer-facing industries
• Growth model: monthly licensing for chatbot solutions and use of ISOs and channel partners to expand reach
• Company cites broader AI and CBD market growth as drivers for strategic direction

Regulatory and governance

• Company recognizes diverse global privacy and data protection laws (GDPR, Israeli Privacy Law, CCPA/CPRA, and state privacy laws) and monitors evolving interpretations
• Cybersecurity governance: no dedicated cybersecurity subcommittee; management monitors cybersecurity and reports to the board as needed; no breaches reported to date

Notable risks

• Financing for the Texas property has not been secured; failure to close could forfeit the earnest money
• Ongoing dependence on the outcome of the Sim Agro discussions and any related financing
• Limited operating history in power generation and data center infrastructure
• Regulatory and data privacy compliance obligations across multiple jurisdictions

Contact

• Principal office: 2425 E. Camelback Rd., Suite 150, Phoenix, AZ 85016
• Main telephone: (602) 481-1544